Two new support measures on car exports will be introduced in Russia

Two new support measures on car exports will be introduced in Russia

Autostat – Two new support measures on car exports will be introduced in Russia in 2018. Russian automotive industry has plans to reach $2.6 billion worth of exports in 2018, which is equivalent to 60-70,000 vehicles. However, the project manager of the Russian Export Centre (REC) on the development of automotive industry: Pavel Burlachenko, who expects a higher figure of car exports due to the high performance in the first months of the year, is of the opinion that the plans should be revised. As a comparison, the same task was set for exports in 2017 ($2.6 billion or 60-70,000 cars), however, a higher amount was generated in the end: $3.115 (110-110,000 units).

The government support for underutilised factories will continue in 2018, as in 2017, as told by Burlachenko. Traditional support measures will be implemented (cost reduction in the transport of car exports supplies to manufacturers and investments in homologation systems, in amongst others), as well as absolutely  two new ones.

The first measure concerns assistance in the promotion of goods abroad and participation in exhibition events. There are plans to provide support for major Russian exporters on the development of after-sales service systems in foreign markets.

The second support measure will be provided as a special programme on tax and customs preferences. The efforts are made in order to create a long-term motivation for exports. The essence of the project is that the Russian manufacturers produce automobiles and components and make exports (car manufacturers throughout Russia, not only four home brands), for which they are credited with virtual points, to be made use of in future. For example, as tax and customs deductions, equipment purchases etc. The long-term mechanism will not be linked to the annual budget planning.

As one may remember, passenger car exports of Russia increased by 24.1% to 84,4 thousand units in 2017, at a total monetary value of $1,32 billion, according to the Federal Customs House data.